Carter’s, Inc. reported financial results for its third quarter of fiscal 2026, which ended October 3, 2026. Net sales for the quarter totaled $752.5 million, a decrease of 0.7% compared to the same period in the prior year. Despite the slight decline in total net sales, U.S. Retail comparable sales increased by 0.4%. Segment performance varied, with International sales rising 4.5% and U.S. Wholesale sales decreasing 3.8%.
Operating income for the quarter was $55.8 million, or 7.4% of net sales, compared to $29.1 million in the prior year. The company reported diluted earnings per share of $1.00 and adjusted diluted EPS of $1.03. For the first three quarters of fiscal 2026, net sales reached $2.05 billion, an increase of 3.9% year-over-year. Adjusted diluted EPS for the nine-month period was $1.68.
The company returned $27.5 million to shareholders through dividends during the first three quarters of fiscal 2026 and did not repurchase any shares during that period. In its updated business outlook for fiscal year 2026, Carter’s projects net sales between $2.91 billion and $2.93 billion. The company anticipates adjusted diluted earnings per share of $3.05 to $3.23 and adjusted operating income of $178 million to $187 million.
Separately, the company announced a leadership change. Richard F. Westenberger has given notice of his decision to step down as Chief Operating Officer, effective upon the appointment of a successor. Mr. Westenberger will continue to serve as the company's Chief Financial Officer. The company also noted that its fiscal year 2025 included a 53rd week, whereas fiscal 2026 is a 52-week year.
